Embracing Change in Insurance: The Path to Sustainable Transport in Northern Territory
Key Ideas
  • John Carey emphasized the importance of insurance approaches supporting the transport industry's transition to sustainability, advocating for the use of alternative fuels like electricity and hydrogen.
  • The Northern Territory faces challenges in EV adoption due to limited infrastructure with only six charging stations, hindering local firms from converting their transport fleets to renewables.
  • Industry pushback exists against sustainable fuels, with resistance stemming from long-standing diesel usage in the transport sector and misinformation about EV fire risks.
  • Carey highlighted the need for insurers to adapt to the changing landscape, remain informed about new technologies, and address the unique risks associated with sustainable transport options.
The Northern Territory Insurance Conference recently discussed the theme of 'Modernisation', focusing on insurance challenges in the local transport industry, particularly heavy trucks. John Carey, the Darwin branch manager for GT Insurance, highlighted the importance of insurance adapting to support the industry's shift towards sustainability. He identified electricity and hydrogen as key alternative fuels with lower emissions, urging insurers to embrace these changes. However, the NT lags in electric vehicle (EV) adoption, with limited infrastructure like only six charging stations across the vast region. Carey outlined the challenges faced by local firms in converting to renewables, such as the lack of repair options for EVs like Tesla within the territory. Despite the benefits of sustainable fuels, there is significant industry pushback, with resistance from those accustomed to traditional diesel usage. Misinformation about EV fire risks further complicates the transition. In this evolving landscape, Carey stressed the need for insurers to stay informed about emerging technologies, address the unique risks of sustainable transport, and overcome industry resistance to alternative fuels. By advocating for a proactive approach and careful risk management, insurers can support the industry's journey towards a more sustainable future.
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